Reliance Jio, RComm sign 12 billion rupees deal

MUMBAI (Reuters) - The telecommunication unit of Reliance Industries has signed a deal worth 12 billion rupees to use Reliance Communications Ltd's fibre optic network to roll out its 4G services, in what is the first business tie-up between two estranged billionaire brothers.

Reliance Industries, controlled by India's richest man, Mukesh Ambani, is the only company to have 4G airwaves for all of India's 22 service areas, but has yet to launch services.

The fibre deal with Reliance Industries is positive for debt-laden Reliance Communications, which is controlled by Mukesh's estranged brother Anil, as it raises hopes for a bigger deal between the two companies to share Reliance Communications' telecommunication towers.

The agreement for fibre is the first in a "comprehensive framework of intended business co-operation" between Reliance Jio Infocomm and Reliance Communications, the companies said in separate statements.

Shares of Reliance Communications rose as much as 17 percent after the news. Other listed group companies of Anil Ambani also surged after the news.

(Reporting by Aradhana Aravindan and Devidutta Tripathy; Editing by Matt Driskill)